The European Securities and Markets Authority on Monday proposed new regulations for exchange traded funds but pushed back a decision on a controversial classification system for ETFs.

“‘The aim of these guidelines is to enhance investor protection and limit the risk of certain practices by strengthening, in particular, the standards applicable to collateral received in the context of activities such as securities lending,” said Steven Maijoor, chair of the ESMA, in a statement.

ETFs must disclose whether they lend out securities and give greater detail on the collateral they hold, Reuters reported.

The ESMA also published a consultation paper on whether funds should require an “identifier” for more complex ETFs. [European Regulators Impose Strict ETF Rules]

European regulators have been taking a greater interest in complex “synthetic” and leveraged ETFs using derivatives they fear might not be fully understood by investors. [Complex European ETFs Face Scrutiny from Regulators]

The ESMA has suggested greater disclosure and transparency for the average retail investor. [European Regulators Push for More ETF Transparency]

“The watchdog said concerns remained about the sale of complex products to retail investors but there were no firm proposals yet on whether to divide ETF products into ‘complex’ and ‘non-complex groups or whether the sale of derivative-based synthetic ETFs to retail investors should be restricted,” Reuters reported Monday.

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